Member Info for mrc_mrc_mrc_mrd

No doubt todays massive drop in SP is somehow my fault!

No AA - you and Chris have hijacked this thread and turned it into completely worthless trash.

Similar to what the BOD have done with the company in my opinion. They have taken an oil and gas company with great potential and turned it into a much smaller business with tiny upside

I guess I have fallen for Chris and AA trying to bury the really good discussion that was posted earlier today.

These guys are snakes.

Chris - there won’t be much to post about once this asset is stripped off. Not much to get excited about on the AD front. Funding seems to be unavailable for these purchases.

Why don’t you jog on now. You’ve sucked in peeps here with your positive garbage over the years. AA is still drinking what you are feeding him I see. Dread to think how much cash you boys have squandered here.

All my own opinion.

Chris, it’s rather sad that you blame me for the SP decline and don’t seem to have the same animosity towards the real culprits. Another case of shooting the messenger I think? You can’t say you weren’t warned!!

I thought the Zubairs are friendly peaceful people??

No Chris, what I have been doing is stating the obvious. You seem to like to shoot the messenger.

I warned exactly what would happen with the fund as you go strategy (which you were a big cheerleader for)

Eh, you will need to explain that one to me Perkins.

What I am proposing gives shareholders a steady small divi from EAG and returns in special divis worth 5x current market cap (if Ruvuma gets developed).

It’s not a prediction, it is a proposal that could allow holders to get a good return from here.

No doubt you prefer the status quote where GNeiss continues to get any spare cash?? Who do you work for Perkins? Do you own any SCIR shares?

44rj - you are talking about more jam tomorrow.

SCIR are far too small to be a listed company. They either need a massive recapitalisation (completely wiping out existing shareholders) or they need to shut up shop IMHO.

Winding up and returning dividends from EAG, along with special divis for each milestone would provide a very good return from todays SP. Purchasing new assets is never going to get you your jackpot.

Agreed 44rj - TPDC bowing out is good news. I wouldn’t be too worried about getting the full payments over time assuming the deal goes through and the milestones are met. Either WEN or ARA.

I also think it is unlikely that ARA will sit on this for too much longer (and force SCIR to relinquish). But still a risk there.

The reason the SP isn’t moving, in my opinion, is because the money is all years away and it will likely be squandered by this BOD and their associates.

The Next BOD need to protect these future funds and return them to shareholders. I have suggested trying to ringfence these funds in some way. Possibly by delisting the company and putting in place restrictive articles of association to control the costs.

It’s great news that TPDC have declined to take up their rights. Just need ARA to make a decision and that will remove the funding uncertainty.

Someone got a response on hedging I think? No requirement to hedge further as the RBL expires in the next 12 months.

Why would they loan SCIR money so that TPDC can have 25%

You guys are in cloud cuckoo land

email - we don’t know but the 3D seismic work is well advanced and drilling scheduled to start in November. The bills may already be piling up.

SCIR have also defaulted on the prolific loan and now need to pay that from cash or from selling the HE1 shares (if not already disposed of)

Lol, are you suggesting ARA will float SCIR $6 million?

Do you understand how business works?

44rj

My main concern would be that TPDC are a Tanz government body and no doubt horribly inefficient and bureaucratic.

An alternative scenario is that they (or a key official) want ARA to have it and are deliberately slowing it down to squeeze SCIR out. Wouldn’t be the first time in Africa that a brown envelope did the talking.

Londoner - Magnus does not have capability to run on Diesel. Even if they could I doubt it would be much cheaper given high refinery margins and cost of bunkering regularly.

Kraken can run on crude, diesel or gas. They were running on diesel I believe when POO was lower and Kraken oil was commanding a premium.

To be clear - I am not saying the deal will change. Rather we have a period of uncertainty over the Loan element and completion timescales.

The timeframe for preemption appears to be undefined so the loan may not be paid out for weeks or months (up to the long stop date where SCIR can cancel the deal).

In the event of a delay SCIR will still need to pay the bills on Ruvuma.

Right then let’s just break it down.

WEN have said they will not pay any monies to SCIR until pre emption is sorted out (rightly, as this is a condition of the deal)

TPDC have an option to buy the stake on the same terms as WEN (including provision of a loan facility).

TPDC do not have to provide a loan unless they take up their pre emption option.

The deal or petroleum regs do not provide a timescale for the pre emption process.

Nobody is obliged to provide a loan to SCIR at present.

Can you tell me which part you disagree with?

AA - you miss my point. As far as we know there is no deadline other than the long stop date. So in theory TPDC could hold up the loan until July next year leaving SCIR carrying the can for the whole work programme.

Do you see what I mean?

AA - yes you are right. But until TPDC makes up their mind SCIR are not receiving any loan monies. WEN have made that very clear.

Once the buyers identity is clear then I agree that the monies will all be due (though not at all clear the government will pay out in a timely manner)

SCIR are liable for the cash calls until the deal completes. How will they pay these without the loan monies?